You purchased an annuity in which you deposit $100 a week at a fixed rate of 4% interest. What formula would you use to calculate its value at the end of 10 years? a = PMT(04/12, 12 120, 100) b. = FV * (04/12, 520, 100) c. = FV (.04/12, 10 * 52, -100) d = PMT(04/12, 12 120,,100)
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- Use the ordinary annuity formula shown to the right to determine the accumulated amount in the annuity. n•t + - 1 A = $700 invested monthly for 25 years at a 6.5% interest rate compounded monthly r ... The accumulated amount will be $ (Round to the nearest cent as needed.)8a. Compute the future value of a $100 annual annuity for the same combination of rates and time periods: (Round your answers to the nearest cent. Round FVA factors to 4 decimal places.) a. r = 8%, t = 10 years FV of annuity $ b. r = 8%, t = 20 years FV of annuity $ c. r = 4%, t = 10 years FV of annuity $Find the future value of the ordinary annuity. Interest is compounded annually, unless otherwise indicated. R= $1,000, i- 0.04, n = 13 O $41.626.84 O $15,025.81 O 54002.58
- Find the value of the annuity at the end of the indicated number of years. Assume that the interest is compounded with the same frequency as the deposit. M= $200 N=annually R=9% T=20 Answer choices: A.) 10,232.02 B.) 133,577.37 C.)11,258.31 D.)11,610.43 E.)9,664.34Calculate the present value of the following annuities, assuming each annuity payment is made at the end of each compounding period. (FV of $1. PV of $1. FVA of $1, and PVA of $1) (Use tables, Excel, or a financial calculator. Round your answers to 2 decimal places.) 1. 2. 3. Annuity Payment $ 5,600 10,600 4,600 Annual Rate Interest Compounded Semiannually 9.0% 10.0% Quarterly 11.0% Annually Period Invested 3 years 2 years 5 years Present Value of AnnuityWhat is the present value of a $500 ordinary annuity at an interest rate of 6% for 5 years? Select one: O a. 2818.55 O b. 2,106 O c. 1,850 O d. 1,105
- Find the future value of an annuity due of $650 semiannually for four years at 8% annual interest compounded semiannually. What is the total investment? What is the interest? E Click the icon to view the Future Value of $1.00 Ordinary Annuity table. The future value is $ 6228.82 . (Round to the nearest cent as needed.) The total investment was S and the earned interest was S (Round to the nearest cent as needed.)What is the future value of $118,000 invested for 5 years at 11% compounded monthly? (a) State the type. A. ordinary annuityB. present value C. amortizationD. sinking fundE. future value (b) Answer the question. (Round your answer to the nearest cent.)For each of the following situations involving annuities, solve for the unknown (?). Assume that interest is compounded annually and that all annuity amounts are received at the end of each period. (i = interest rate, and n = number of years) Present Value Annuity Amount i n1. ? $ 3,000 8% 52. $ 242,980 75,000 ? 43. 161,214 20,000 9 ?4. 500,000 80,518 ? 85. 250,000 ? 10 4 Sandy Kupchack just graduated from State University with a bachelor’s degree in history. During her four years at the university, Sandy accumulated $12,000 in student loans. She asks for your help in determining the…
- An annuity pays $13 per year for 42 years. What is the future value (FV) of this annuity at the end of that 42 years given that the discount rate is 4%? OA. $817.59 B. $1,635.18 OC. $1,362.65 D. $1,907.71 ...7b. Compute the present value of a $100 annual annuity for the following combination of rates and time periods: (Round your answers to the nearest cent. Round PVA factors to 4 decimal places.) d. r = 4%, t = 20 years PV of annuity $posit at the end of hat year 3? p5-19 Future value of an annuity For each case in the accompanying table, answer the questions that follow. Case Amount of annuity Interest rate Deposit period (years) A. $ 2,500 8% 10 S00 12 30,000 20 D. 11,500 8. E 6,000 30 a. Calculate the future value of the annuity, assuming that it is (1) An ordinary annuity. (2) An annuity due. h Compare your findings in parts a(1) and a(2). All else being identical, which type able? Explain why.